Monday, November 15, 2010

Politicians and Jobs

I always get nervous when I hear politicians promise to create jobs. What we seem to forget is that there are only two types of jobs that politicians can create: Public sector jobs created with new bureaucracies or private sector jobs created because of new regulatory requirements. I would suggest that we really don't want these types of jobs. If politicians were really serious about helping to create jobs they would stop changing the tax code each and every year. Until Fanny Fox brought down Wilbur Mills, US businesses could count on taxes working the same each and every year. Confidence in business plans requires confidence in the tax codes that they are written to take account of.